A study of key issues in financial economics ranging from asset pricing to corporate finance. Topics include an overview of the financial system and various asset classes, present value, discounting, risk and return, capital asset pricing, arbitrage pricing theory, financial derivatives, pecking order theory of capital structure, and the efficient market hypothesis. Topics are then applied to financial crises and policy responses in a way that highlights the connection between finance and the real economy. Prerequisites: ECON*100 and ECON*101. Distribution Requirements: QR, SB.